A car title loan is a great way to get that extra money you need when you need it. There are many reasons why a person is looking for extra money: home remodeling, vacations, a medical emergency, or arrears on some debts. Either way, a car title loan can be the source you want to quickly acquire a loan, even if your credit is not as favorable.
The good news is that almost everyone can receive a loan of this type. However, there are scenarios where a loan by title is not accepted, and one of those reasons has to do with the title of the vehicle that you will use as collateral for the loan and if it is legal or if it is free of liens.
What is a Car Title Loan?
Car title loans are loans that many people find convenient and easy to obtain because anyone who owns a lien free or legal title is typically chosen to acquire one. The process of applying for a car title loan is quite simple. If you have the title of your vehicle, you use it as a guarantee. Of course, the loan amount varies, depending on the value of your car; likewise, it is completely possible that you leave the office with a considerable amount of money. In many cases, the loan amount is large enough to help you pay unexpected debts or to at least pay a portion of them and thus avoid going deeper into a financial crisis.
The great advantage of auto title loans is that they are much easier to obtain than a traditional loan. Common lenders review your history and credit rating, in addition to asking a lot of questions, and then make you wait before knowing if your loan will be approved or not. With a car title loan, your credit history will not be a problem. Your employment history, residence and the value of your vehicle are the key factors that will determine if you can receive a loan from a car title loan agency.
Can you get a Car Title Loan with a Financed Vehicle?
Unfortunately, the answer to this question is no. In order to obtain a car title loan, you must have a legal and tax-free title; this means that the vehicle you will use for the loan needs to be paid in full. You must own the car and be authorized to assign the title of the car if the loan is not paid on time.
Your car is your guarantee, and if this remains the property of the bank, the latter still has the right of retention on it until all fees are paid. For this reason, auto title loans are not allowed to place a lien on a financed vehicle if that financing has not been completed.
Does this mean that if your car title is not free, you have no chance to get a loan of this type?
Not necessarily. There are ways to get something called participatory loan on the vehicle. A participatory loan on your car can be a recommended solution for someone who needs fast money, who owns a car that is still financed and has a good track record making financing payments. With this type of loan, you can buy small amounts that may be of help to get through your financial crisis.
Who qualifies for a participatory car loan?
There are some criteria to comply if you want to opt for this alternative. You will need an identification granted by the government, a proof of stable and consistent income, a car or truck registered by you, in addition to documents that show that you are paying the vehicle and that show that you have a good payment history, that is, that At least six months have passed without delaying or forgetting the fees. Those six months must be consecutive, as well as the payment of your fees at the time of acquiring a participatory loan on your car.
Obtaining a participatory loan is not as easy as obtaining a car title loan. To receive it, you must first find a place that handles this kind of loans. Unfortunately, since many people do not identify the difference between the two loans, car title loan companies and participatory loan companies are sometimes confused without knowing for certain what services each offer. That makes it difficult to find specific lenders that offer participatory loans on your car without first investigating it.
If you own a car and have a lien-free title, and even if you have a trusted friend or family member who owns it and is willing to help you, acquiring a car title loan is the best option, since these are extremely easy to obtain and do not involve many headaches or jumping from one place to another;
They are also ideal for having the money you need, whether for home repairs, medical expenses, debts or any type of unexpected expenses.
All you need is a title free of liens and documents that include, of course: your title, residence history, and information about some current job. In most cases, you can make your loan the same day, and you don’t necessarily have to state the reason for it. The car title loan company does not need to know what you will use the money for and on some occasions, nor will they ask you.
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If you need quick money for your emergency bills or other financial aid, consider car title Loans at MVP. MVP Car Title Loan has developed a standardized procedure that provides you with the necessary funding within a short period of time, and we have implemented a generous and lenient repay policy that allows you to pay the borrowed amount according to your ease.